The Cato Corporation reported net income of $3.8 million for the third quarter ended November 3, 2018, compared to net income of $2.7 million for the third quarter ended October 28, 2017.
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Earnings per diluted share for the third quarter were $0.16, compared to $0.11 last year. Sales for the third quarter ended November 3, 2018 were $187.9 million, flat compared to sales of $188.4 million for the third quarter ended October 28, 2017. Same-store sales for the quarter increased 1% to last year.
For the nine months ended November 3, 2018, the company earned net income of $33.7 million, compared to net income of $24.0 million for the nine months ended October 28, 2017.
Earnings per diluted share were $1.36 compared to $0.93 last year. Sales for the nine months ended November 3, 2018 were $630.8 million, flat compared to sales of $631.0 million for the nine months ended October 28, 2017. Year-to-date same-store sales increased 1% to last year.
For the quarter, the gross margin rate increased to 34.5% of sales from 33.9% last year, primarily due to higher merchandise margins and lower buying, distribution and occupancy expenses.
The SG&A rate for the quarter decreased slightly to 32.9% from 33.0% last year primarily due to favorable litigation settlements offset by higher incentive compensation. Income tax for the quarter was a benefit of $1.3 million compared to a benefit of $2.8 million last year. The company ended the quarter with cash and short-term investments of $213.7 million.
Year-to-date, the gross margin rate increased to 37.4% of sales from 34.8% the prior year primarily due to higher merchandise margins and lower buying, distribution and occupancy expenses.
The year-to-date SG&A rate increased to 31.2% from 30.1% last year primarily due to higher incentive compensation and insurance costs offset by favorable litigation settlements. Income tax for the year was an expense of $2.9 million compared to a benefit of $0.3 million last year.
As of November 3, 2018, the company operated 1,350 stores in 33 states, compared to 1,370 stores in 33 states as of October 28, 2017. ■